When talking about insurance, one of the first things that pop in our mind is the protection of our home, the protection of our business and products. But what about protecting ourselves? While you can protect yourself and your family from robbery by installing a home alarm system and cameras, you should also protect your health and your life.

Imagine the worst-case scenario – you have an accident or you’re dealing with a serious illness, and can’t work for a certain amount of time. What would happen then? With no income, how would you be able to continue paying your bills and your living expenses? Devastating, right? This is why playing it safe is always a good idea. With the help of a personal accident and sickness insurance, you can be covered in the worst possible situations.

What Is Personal Accident and Sickness Insurance?

Simply said, a personal accident and illness insurance is one of the best ways to stay on top of your expenses while not working. This insurance is designed to provide you with a monthly benefit of up to 80% of your income, so you can live a more peaceful life until you return to work.

Whether you’ve lost a limb, have had a serious injury that has left you unable to work or you’ve had an accident that has left you permanently disabled, this insurance can cover it all. Even an accidental death. When structuring the insurance, you should take into account some of the following things: the benefit period, the waiting period, the ownership structure and the scope of cover. Keep these aspects in mind as doing it wrong may have serious consequences for both you and your family. If not sure what to choose, consider seeking professional advice.

The ongoing monthly benefit can cover the mortgage and other outstanding debts like credit card and car loan, everyday living expenses like school fees, utility bills, food, clothes, etc., as well as some changes in lifestyle expenses. Depending on the company and on the insurance policy, sickness and accident insurance can cover some other expenses like nursing care, rehabilitation, overseas assistance, etc. These benefits can certainly give you peace of mind while helping you focus on your recovery.

Regarding age eligibility, the maximum age at which you can use this insurance varies between different insurance providers. However, most accident and illness insurance policies will stop providing cover once you turn 90. Yet, this condition isn’t regulated strictly, so checking with your provider is highly recommended.

Important Things to Know

Besides using it for personal matters, this insurance can also be used by a company. If you are a company that has a personal accident and illness insurance, your company will receive benefits if an employee is unable to work or suddenly dies. Regardless of what caused their injury or illness, and regardless of the condition (temporary or permanent), your company can receive an income and use it the way you see fit.

Practice shows that this money is most commonly used for paying sick pay for the employee or for hiring a temporary replacement. Another great thing about this insurance is that in many cases, the payments you make towards it are tax-deductible. But in order to claim a deduction, you’ll have to show that the payments are an expense incurred. This type of cover is called income protection insurance, but still, you’ll have to consult with your provider before making any assumptions and moves.

This insurance can be extremely beneficial for self-employed workers who aren’t covered under group policies from their employer. So, if you can’t run your business in case of your own sickness or injury, this insurance can be your financial survival opportunity. Generally speaking, you can get around 75% of your gross income, so you could be able to pay for your lifestyle expenses.

You can also consider critical illness insurance, which is a policy that pays extra for some particular and difficult illnesses like cancer. Except for covering the rehabilitation and ongoing care, this policy can also cover more expensive medical treatments. An important thing to know is that it isn’t covered by your health insurance for these conditions. So, in order to find out if this insurance is worth the cost or not, consult with your provider or someone who knows how it works.